Rigetti Computing Inc. (RGTI) develops and provides quantum computing solutions for various applications. The company was founded in 2013 by Chad Rigetti, a former IBM quantum researcher.
The company designs and fabricates its own quantum chips, which are superconducting circuits that operate at near-zero temperatures. It also integrates the chips with a classical computing architecture and a software platform called Quantum Cloud Services, which allows users to access the quantum processors online and run quantum algorithms.
Rigetti has deployed several quantum processors with up to 80 qubits and has achieved a net energy gain in a nuclear fusion experiment using its quantum technology. The company aims to build the first quantum computer that can outperform a classical computer on a real-world problem, which is known as quantum advantage or quantum supremacy.
In the rapidly evolving landscape of quantum computing, Rigetti Computing has emerged as a player worth monitoring closely. Its portfolio of 165 patents has solidified the company’s position in this market, paving the way for a future that promises the use of quantum computers for practical applications.
For the second quarter, the company recorded total revenue of $3.3 million, an increase of more than 56% compared to the second quarter of 2022. Because Rigetti is a young company operating in a fast-growing market segment, investors should ideally focus on the technology milestones of the company, its collaborations with partners and the prospects for the quantum computing industry to evaluate the future of the company.
Significant milestones and partnerships
In the second quarter, Rigetti achieved significant milestones that underscore its prominence in the quantum computing sphere. A notable achievement was the sale of its first quantum processing unit to a renowned national laboratory. This QPU is comprised of nine qubits and is accompanied by an array of hardware. As revealed during the earnings call, this QPU comes with a unique square lattice design, enhanced with adjustable couplers that are fine-tuned to facilitate the execution of two-qubit gate operations.
During the quarter, the company also partnered with ADIA Lab, a collaboration aimed at conceptualizing, crafting, executing and refining a quantum computing solution.
Future plans and improvements
Remaining committed to continuous improvement, Rigetti has a clear plan for enhancing its quantum systems. A significant step in this direction is the refinement of the Ankaa-1 system. The company’s goal is to achieve a 98% accuracy level in the performance of its two-qubit operations. This improvement is essential as it sets the foundation for the upcoming Ankaa-2 84-qubit system. This new system is expected to be launched in the fourth quarter of 2023.
The company is also working toward achieving a 99% accuracy level in two-qubit operations with the upcoming Ankaa-2 system, which is projected to become a reality in 2024. The expected success from this will be a stepping stone toward the creation of the Lyra system, a 336-qubit quantum marvel that holds the potential to redefine the capabilities of quantum computing.
The market opportunity
There is a significant untapped opportunity within quantum computing. The appeal of quantum computers, which possess the ability to address challenges that are beyond the reach of classical computers, has sparked the interest of both industries and researchers. Rigetti Computing's vision aligns with this transformative potential as the company plans to develop quantum computers that can meet the stringent requirements of practical workloads.
The ambitious endeavor to fulfill these requirements stems from the understanding that for quantum computing to truly revolutionize business sectors, it must possess the capability to scale and perform effectively in real-world scenarios. Rigetti's roadmap targets the next generation of quantum computers with systems that boast hundreds to thousands of qubits. This level of scalability signifies a massive leap in computational power, capable of addressing challenges spanning diverse domains, from cryptography to drug discovery and beyond.
However, the scale alone is not the sole parameter that determines the viability of quantum computers for practical applications. Error rates play a key role in the mass adoption of this technology. With a visionary threshold of less than 0.5% error rates for the next-generation systems, Rigetti has highlighted its commitment to pushing the boundaries of error mitigation techniques. The company seeks to forge a path where quantum computers can reliably and consistently produce accurate results, becoming indispensable tools for complex problem-solving.
Engineering achievements and future integration
Rigetti has not only delved into the theoretical and algorithmic dimensions, but has also tackled the engineering challenges head-on. Clock speeds exceeding 1 MHz and manufacturability are no longer abstract goals, but tangible achievements, underscoring the company’s notable strides in bridging the gap between theoretical promise and physical realization of the power of quantum computing.
The development of a co-processor that seamlessly integrates with classical computers underscores the company's belief that the future of computing will be of a hybrid nature. This integration has the potential to accelerate the adoption of quantum computing in the future.
With a current cloud hardware market valued at $120 billion and a high-performance computing market valued at $40 billion, Rigetti Computing has the potential to tap into a massive market opportunity with its quantum computing solutions if the company's investments yield the desired results in the coming years. This makes it a company worth monitoring closely.
The quantum computing sector, though in its early stages, promises to change the way businesses operate permanently in the coming years. As a young company that holds a lot of potential in this sector, Rigetti remains committed to its long-term goals, aiming to introduce a 1,000-qubit multichip system by 2025 and a 4,000-qubit multichip system by 2027.
Investing in Rigetti Computing stock today is a high-risk bet on the company’s ability to deliver on these promises, which makes it suitable only for investors with a high-risk appetite. In the coming quarters, investors will have more data to work with as the company is likely to update the market on its progress in achieving these objectives.
Originally published on GuruFocus.com